Bitcoin (BTC) circled $23,500 on Feb. 4 as bulls refused to give up support in after-hours trading.
Bitcoin price evokes memories of 2020
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD held a tight range since the Wall Street open on February 3.
The US macro data release provided modest volatility but no overall trend change as traders bided their time before the weekend.
However, views on the long-term outlook were mixed, with some holding that there was little reason to be confident that Bitcoin’s rally would continue.
“We have already seen $50,000 calls on Bitcoin and have yet to complete a market structure change higher and lower,” popular Crypto trader Tony summarized in part of a tweet of the day.
More bullish was fellow trader Credible Crypto, who doubled down on a theory comparing current BTC price action to that of late 2020, just after Bitcoin had breached its 2017 all-time high.
“Price action has built beautifully from our lows, mimicking the bottom formation that preceded our last 10k-60k+ push. The current consolidation (circled in green) also looks identical to the PA of that momentum,” he said. wrote in an update to a corresponding Twitter thread.
“BTC may continue to pump while most wait for a pullback…”
Others were worried about a change in the fortunes of the US dollar, which could affect risk assets across the board if it continued.
The US dollar index (DXY) was “ringing alarm bells” for popular trader Bluntz, who revealed a transition to stablecoins.
“After such a long and deep selloff, do we think the DXY is already up? No. There are a lot of shorts to squeeze yet”, macro-investor David Brady commented on the dollar’s fall from twenty-year highs in the third quarter of 2022.
RSI ready for a “bullish continuation”
Meanwhile, focusing on monthly timeframes, trader and analyst Rekt Capital noted a potential signal for Bitcoin to drop before continuing higher.
Related: Bitcoin due for new ‘big rally’ as RSI copies 2018 bear market rally
This came in the form of its relative strength index (RSI), which in January rebounded from record lows to recapture a key support level.
While acknowledging that historically, Bitcoin markets “haven’t really seen a double bottom” on RSI, he argued that there was still a chance that a higher low could come next.
“Now just firming up and keeping these levels consistent and stable, that’s what we really want to see for a bullish continuation,” he concluded on YouTube. video released on February 3.
a twitter survey de Rekt Capital also delivered a close consensus that a drop should be in store for BTC/USD.
The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
